STEP 4:
Enter your adjusting entries.
Using the Trial Balance prepared in Step 3 and the data below, prepare and enter the five necessary adjusting entries for the month of January 2017.
Adjustment Data
a. Office supplies on hand: $120
b. Accrued service revenue: $1,200
c. Accrued salaries expense: $1,000
d. Prepaid insurance for the month has expired: $250
e. Depreciation was recorded on the truck for the month: $250
The adjusting entries should be input as Journal Entries 2 through 6, dated “January 31, 2017,” using the directions provided in Step 2. For the “Description,” enter “Adjusting Entry” and the letter of the adjustment from above.
STEP 5:
Prepare the financial statements.
Choose the “Reports” menu from the left-hand side of the screen. Scroll down to the “Business Overview” menu and choose “Profit and Loss.” This is the company’s income statement. Choose “Custom” for the date description and enter the dates “1/1/2017” to “1/31/2017”. Click “Run Report.” Save the Profit and Loss statement as a PDF file named “LastnameFirstinitial.ACC250.QB.PL.”
Choose the “Reports” menu from the left-hand side of the screen. Scroll down to the “Business Overview” menu and choose “Balance Sheet.” Choose “Custom” for the date description and enter the dates “1/1/2017” to “1/31/2017.” Click “Run Report.” Save the Balance Sheet as a PDF file named “LastnameFirstinitial.ACC250.QB.BS”.
Submit your two financial statement files in LoudCloud.
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AccountDebitsCreditsDescriptionName
Cash22,500 Beginning Balance
Accounts Receivable1,300 Beginning BalanceA Customer
Office Supplies700 Beginning Balance
Prepaid Insurance750 Beginning Balance
Truck20,000 Beginning Balance
Accumulated Depreciation – Truck250 Beginning Balance
Accounts Payable400 Beginning BalanceA Vendor
Unearned Revenue3,200 Beginning Balance
Owner’s Capital43,350 Beginning Balance
Owner’s Withdrawals2,000 Beginning Balance
Service Revenue3,450 Beginning Balance
Salaries Expense1,500 Beginning Balance
Fuel Expense250 Beginning Balance
Rent Expense1,600 Beginning Balance